How to Increase Your Savings Without taking any Market Risks (Life Insurance)12 min read

Yesterday, I got a WhatsApp message with a title “What is your salary?? Are you happy with it?”. This title got my attention as it is catchy and relatable to me and my audience, so I chose to read the entire message?

Here’s the message:

What is your salary? Are you Happy with it?
I am 29 , My Salary is 14 Lakhs PA , after Tax deductions I get 95K monthly, live in Chennai and i am happy with it.

Reasons below:

I didn’t buy a HOME worth 60 or 70 Lakhs, I am not a big fan of it by paying EMI around 35K per month & being in tension all the time and losing my daily happiness.

Instead, I pay 10K as rent for a Home which is worth 60L, which is also near to my office reducing my commute time, back-pain, traffic tension. Every-time I change my office I can switch my home as well, this will not happen with an Own house. Some of my colleagues are travelling 2 hours morning and evening as they are coming from their own house and they explain how irritating it is to travel 40 KM in the Chennai traffic and Hot weather.

People who are commuting more than 90 minutes for work are not able to concentrate on their Work and miss good projects and they tend to grab a poor project which is near to them. If u live in rental you can be flexible in timings and can spend quality time with your family.
20 K in Mutual Funds which gives more returns than owning an apartment.

25 K for Household expenses like Petrol, EB, Milk, TV, Internet, Grocery Vegetables, Maid, Meat & ETC

6K in gold purchase, every month investing in the scheme for my Wife (I don’t like it but what to do when you are married 🙂 )

2K to my single Grandma who lives in my Hometown village.

3K for Kid school expenses.

14 K is for eating out, shopping, outing.
Remaining 15 K is my savings, any last minute surprises, Hospital bills, Family functions etc.

I don’t own a credit card, I don’t buy things with EMI (its a trap), I don’t have any loans. I will not have month end problems and I will not wait for my salary to be credited to buy any urgent things, I will spend from last month’s savings.

I have a 125 CC bike (5 years old) and I am happy with it even though I love 2L worth Royal Enfield Continental GT, even though I have savings to buy in a single payment, I will not buy it considering the monthly expenses and service charges.

Have a 1000 CC Hatchback car which is enough for my Family and Indian roads.

I wont spend much in restaurants/shopping but instead utilize that money for trips , will travel with my family to all possible places (beaches, temples, amusement parks , new cities) with my small car, will pack food, spend time with them.

Living life simple makes me happy than others who earn more than me.
Edit 1 : I learnt this simple thing from My Dad, he is my role model for living a healthy life and saving from what we have in hand.

He doesn’t have any credit card or a loan, he has an own house 4 BHK, 3 lands atthe hishome town, still earning , living healthily.

He is 58 years old , has no BP ,Sugar , Back Pain, the last time he went to hospital was 12 years back for a small accident in the bike.

His Routine : He wakes up by 5 AM , does Yoga , walks for 3 KM , reads news paper, chats with friends ,drops my sister to the college bus, goes to office , comes for lunch, goes to office, picks my sister from the college bus , takes care of home needs, goes to the market, gardening, visits temple, library, calls his close relatives and solves any problems in their family,spends time with my mom in the terrace, visits us in Chennai regularly once in a month, helps me to invest in good plans, plays with my daughter, visits his hometown for relatives function, Lives happily,

He is a perfect example of how to live.

How many of you are having your lunch at Home today, will be very less, i used to go to Home for lunch twice in a week in between office time whenever the work is less, my dad use to come home daily for lunch (last 30 years) and help Mom in the kitchen for 10 mins , watches news while eating, he is not a billionaire but knows how to live without pressure, he knows to balance work and life.

My Dad’s cousins are earning more than him, working in the Gulf countries leaving their families here. my Mom usually worries about this as when relatives get richer, they only gain another home in Chennai and all kinds of diseases with them..My uncle who is the richest person in my entire family can’t eat a single food which has sugar/salt. He uses to take insulin daily, whats the point of earning so much by working day and night!

I still say my dad is the richest person in my Family to have good children, good grandchildren, surrounded by positive friends (real friends), good environment, some good relatives & leading a peaceful life.
Till today I have never told him how much I admire him and how much I look to him as a role model for my Life, but he knows, does it need to be said?

Peace be with you

What do you think of the Lifestyle mentioned in the above message?

Doesn’t it felt soothing and secured. The guy has nothing to worry about and he is living an excellent life with his family.

Well, Ialso thought the same when I read the message for the first time. But then I realized that the guy is living a pretty average lifestyle.

He is driving a 150cc bike even though he wishes to ride a Bullet, living in a rented apartment even though his mutual funds are paying him more than a rented flat/apartment. He is going to theoffice every single day and working full time and probably continue to do the same when he reaches the age of retirement.

Is this the kind of lifestyle you want?

Maybe it is true and this is the lifestyle that you want to live. But if you expect bigger from your life than there is one another way to live a secure life but with higher standards.

Life Insurance Policy (LIC): Is it Capable of Securing your Future

I know you have already heard about the Life Insurance Policy (LICs) before. And may you have already opted for one or two schemes as well.

That is a really good move towards savings. But, How sure are you about your future security?

Maybe the returns that you see now looks big but may not be as big once your LIC actually matures.

What I’m trying to prove here is a fact that LIC(s) seems to give good returns but the long maturity period just doesn’t make it your best option for security.

Sure, you will have some savings in your bank account after twenty-thirty years but that’s not security (correct me if I’m wrong).

So, how can you be sure that your future will be secure?

Clear the Misconception

You see, I’m not trying to discourage you towards LIC(s) in any way. I think LIC(s) are a great way of saving money. In fact, I myself recommend people about thegood schemes so that they can get the maximum benefit.

What I’m actually trying to say is that LIC(s) does not guarantee security. It onlyguarantee savings.

So, if you are looking for the savings then LIC(s) is undoubtedly a good way to proceed.

Life Insurance is a Mis-conception

The biggest misconception about LIC(s) comes by its name itself – Life Insurance.


Pile of money can never secure your life. And LIC(s) is nothing more than a pile of money.

With LIC you build up money in your bank account after a certain period of time andthisperiod is a longperiod and that is probably what they refer when they say Life Insurance Policy. It just goes forever.

So what is the other good option?

Medical Insurance: Does it Secure Your Life


Medical Insurance definitely secures a part of your life.

You will be shocked to know that more than 30% people in India declare bankruptcy because of Medical Bills.

And if you give it a thought you will definitely find someone or the other struggling to make their ends meet because of their big medical bills. It could even be someone in your relatives.

Medical Treatments are very costly and it is a mandatory part of someone’s life.

You cannot leave your family member suffer from disease, you would definitely give them the medical attention they need. And it all takes a lot of money.

You cannot be 100% sure of your health in the future. Future is very unpredictable. You should always hope for the best health but also prepare for the worse. And that’s how you balance life.

Medical Insurance is a great way to secure that part of your life for you. And it all comes down to picking up the right scheme for yourself.

For example:

Suppose you know that there is a past medical history in your family then you should opt for a medical insurance policy that covers that illness. A little foresightedness and calculated thinking can do wonders for you in the future.

But life doesn’t stop here, does it?

You are not living alone. You have a family to look after. And that is a major part of the equation.

You should always be prepared for the worst.

That is where Term Insurance comes into the picture.

Term Insurance

Term Insurance is a life cover. It gives you the maximum coverage in the lowest price.

It is not like other premiums that ensuresavings.

It doesn’t provide savings but helps your family tostayfully covered even after you are not there.

Some of the key features that make term plans indispensable

1. Larger life cover

Sinceterm life insuranceplans are more affordable it is possible for an individual to opt for a higher life cover for the same premium as an endowment plan. For e.g. a 30-year old can get a term plan with a cover of Rs 1 crore for a 30-year term by paying a premium .

The Rs 1 crore endowment plan will most likely out of bounds for most 30-year olds. However, taking a term plan for a similar cover is relatively more feasible.

2. Riders

The policyholder can attach riders to the term plan, thereby enhancing the utility of the policy.

So by opting for a critical illness rideror acritical illness plan,for instance, he is entitled to receive the sum assured on being diagnosed with the critical illness. This is in addition to the death benefit of an equal amount on death over the term of the policy.

There are other riders to choose from like – loss of employment cover, disability cover, waiver of premium cover, among others. The policyholder should select riders based on his specific needs to make the life cover more suitable and meaningful.

3. Enhanced cover

Certain insurance companies offer the flexibility to enhance the life cover during critical stages of the policyholder’s life. For instance, the policyholdermay be permitted to enhance life cover by 50% at the time of marriage and by 25% at the time of turning a parent. This makes it possible for him to start with a modest cover and then enhanceit as responsibilities increase as also the ability to pay higher premium.

4. Innovative features

While insurance companies have been quick to innovate in general, they have been most innovative with regards to what isterm plans. For instance, companies have been quick and proactive in cutting premium rates even offering extra discounts to certain categories like non-smokers, for instance. Buyingterm plansis now quite convenient thanks to the internet. It is possible for a healthy individual, as defined by the insurer, to buy a term plan over the internet without taking a medical test.


If youare really concerned about your financial stability then you must secure yourself and your family from the medical bills first.

Once you have the cover, you can really go out inthe world fearlessly and confidently. These things might not look that important at first but when you really face the worse, these things act as your saviour.

Once you have secured the major part of your life, then and only then you can say that you are living a tension free life. Now you can actually focus on theother important part which is investing.

So, what do you think?

Do you dream of a certain lifestyle? Please comment below and share your views.

How would you manage your savings, investments and insure safety?

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  • Article By: Varun Shrivastava

  • Varun Shrivastava is an innovative Full Stack Developer at ThoughtWorks with around 4 years of experience in building enterprise software systems in finance and retail domain. Experienced in design, development, and deployment of scalable software. He is a passionate blogger and loves to write about philosophy, programming, tech and relationships. This is his space, you can get in touch with him here anytime you want.